The US Senate has advanced a new sanctions bill that would, among other things, impose harsh tariffs on the top buyers of Russian oil and gas, which include India and China.

The bill, if it becomes law, would give US President Donald Trump new authority to impose up to 100% tariffs on goods imported from India, creating a new headache for New Delhi, which has held back on sealing a trade deal with Washington over fears of being hit by surprise tariffs. 

India is the second largest importer of Russian oil as it has sought to widen its energy basket amid disruptions in the Middle East caused by the Israeli-US attack on Iran.

The ‘Graham bill,’ named after its co-author, the late Republican Senator Lindsey Graham, was advanced in a 86-12 vote on Tuesday night. 

“To be really blunt, China and India are the main culprits here,” Democratic Senator Richard Blumenthal, a co-author of the bill, told reporters. 

“They purchase the vast majority of oil and gas. They are fueling Russia’s war machine and they are doing us no favors anywhere else in the world.”

The bill also proposes sanctions on Russian officials, oligarchs, their family members and other individuals supporting Russia against Ukraine as well as banks, financial institutions and the so-called Russian “shadow fleet.”

The bill still has to clear the final vote in the Senate, after which it would go to the House and is expected to be taken up by the lower chamber in September. 

However, it adds a new variable to New Delhi’s calculus as it drags its feet on finalizing a trade deal negotiated with Washington for months. New Delhi wants clarity on how any additional sanctions could affect its competitive advantage over ASEAN nations and neighboring countries including Bangladesh before finalizing the deal.

Last week, the US imposed 10% tariffs on imports from India, citing an investigation into forced labor. New Delhi is also the subject of another probe into countries using excess manufacturing capacity to export to the US.

The Senate’s vote came as Ukraine’s Volodymyr Zelensky visited Washington to seek continued US support for his country’s fight against Russia. 

Some Democratic senators are unhappy about granting more tariff authority – a Congressional prerogative – to Trump, but the bill is expected to pass as Ukraine’s supporters want to pressurize the Russian economy.